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02
Working out whether a short or long lease term is best
for you depends upon which side of the fence (or lease)
you are sitting on.
There are pro's and con's for each alternative.
Are you the Tenant or
the Landlord?
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Disadvantages
• More complex negotiations
• Locked in
Landlord - Long Term
Advantages
• Stability
• Certainty
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Disadvantages
• More complex negotiations
• Increased maintenance and repair
costs
• Greater risk
Tenant - Long Term
Advantages
• Stability
• Certainty
• May offer tenant greater
negotiation power.
05
A long term lease is typically five years or longer.
Offering stability and security, they’re favoured by
landlords and investors looking for a high return
on investment (ROI).
These arrangements work well for tenants who
need stability of location, predictable outgoings
and who may wish to negotiate concessions on
other lease terms.
Long Term leases
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Disadvantages
• Lack of security
• Lack of stability
Landlord - Short Term
Advantages
• Flexibility
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Disadvantages
• Moving costs
• Lack of security
• Lack of stability
Tenant - Short Term
Advantages
• Flexibility
• A bail-out option
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A short term lease is generally for a period of 5
years or less.
Perfect for landlords in a high demand area and
agile and flexible tenants. They are a great lower
risk option.
Beware - If you’re negotiating a retail lease check
the legislation as some Australian states stipulate
minimum terms.
Short Term leases
09
Check out our range of professionally drafted
lease agreement kits for all Australian States.
Save thousands of dollars in legal fees and plenty
of time too!
Need help?
Click here